Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

BP “on the cusp” of delivering strongest oil and gas portfolio in the industry - Goldman

Goldman Sachs maintained its ‘buy’ recommendation on the FTSE-100 oil giant with a 12-month price target of 730p a share
BP garage
BP's portfolio of new projects is seen as more profitable today and is now among the best in the industry, said Goldman

BP PLC (LON:BP.) is on the cusp of delivering huge oil and gas results, according to US investment bank Goldman Sachs, which added the oil giant to its ‘Conviction List’.

“BP is on the cusp of delivering one of the industry’s strongest pipelines of new oil & gas projects … with sector-leading production growth, free cash flow improvement and unproductive capital release from mega-projects,” Goldman Sachs said in a note to clients.

READ: BP second-quarter profit four-times higher than a year earlier, boosted by higher oil price

Goldman maintained its ‘buy’ recommendation on the FTSE-100 group with a 12-month price target of 730p a share, more than a third above its current level, due to its positive view on its prospects and cash flow.

"The delivery of a record pipeline of upstream projects is progressively bringing BP closer to the sweetspot of its exportation and production transformation, which we believe will materialise in 2019, with production from nine major upstream projects rapidly ramping up to peak capacity, and capital expenditure commitments falling. We estimate that BP's portfolio of new projects is more profitable today and is now among the best in the industry,” Goldman’s note added.

BP’s payments relating to the Deepwater Horizon oil spill will likely wind down to less than 5% of BP operating cash flow by 2020, said the note.

Shares in BP, which have risen by more than a pound in the last year, were 0.7% down at 560.4p in mid-morning trade.

View full BP. profile View Profile

BP plc Timeline

Related Articles

oil and gas operations
April 19 2018
The first two potential new wells will be drilled in around 45 days, and investors will be keen to see the results
Oil and gas workers
April 18 2018
Tapi Aike, located in the Austral basin, was one of most hotly contested blocks when it was put out to tender
oil and gas operations
August 02 2018
The agreement includes up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest in the Ruvuma PSA, which would include the Ntorya project

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use